♪ ♪ ♪ imus in the morning ♪ >> america's middle class crushed, taxed, regulated, stuffed into part-time jobs and the numbers do not lie. good morning, everyone. here is the number. 4.4%. that's the decline, repeat, decline in median income in the obama years. averaging income down even more, and there's more on that.

two big-name employers cut health care coverage because of obamacare. do you remember that promise, you could keep the coverage you like, not happening. today, the president starts a bus tour, speaking to friendly college audiences. he'll push a free ride for college students, funded in part by taxpayers. that is the theme of the show today. the middle class, struggling big time and getting more of the same from the president. "varney & company" about to begin. ♪ make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you start using active trader pro today.

>> 11:15 eastern this morning. mark that time. president obama will make his pitch to the middle class. his bus tour of college campuses in new york and pennsylvania will start today. here is the talking points. more of the same. tax and spend policies, but here is the reality. since the president took office, unemployment has been stuck between 7 and 9% and check this number, please. since the official end of the

recession, median household income down 4.4% to 52,098 dollars a year. college kids graduate with tens of thousands worth of debt and can't get jobs in the obama economy. however, expect a friendly reception today when he speaks to those liberal college crowds. here is how he will address those students directly. he is expected to tout a local say yes to education program. that's a public-private partnership between colleges and cities that sends high school students to participating colleges for free. president obama expected to push this program nationally, push it out nationwide. he says, it would make higher education more affordable. but is it a form of handout? it amounts to a free ride to college with taxpayers picking up some of the be tab. pap lahr with his audience, yes, but costly to taxpayers, that's on tap today. remember, we're always trying to make you money, turns out even if you are making it, you are not spending it.

big name retailers not selling like they used to. we have some dramatic numbers on that for you a little later. and get this, for the first time since 2011, yahoo! beats google in web traffic. we're going to check how those two stocks open in just a couple of minutes. but first off, check this out. a military hover craft landing on a crowded beach in russia. a defense minister says, oh, it's a normal event. you know, that he was on a tactical mission in a military-owned area. maybe normal for russia, not quite the jersey shore though, is it? the opening bell is next and we're looking for a higher open, maybe 50 points up. my mantra?

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♪ ♪ playing all night ♪ ♪ and the music's all right ♪ >> talk about getting squeezed, here is why you're not spending money. median income down 4.4% in the obama year, that's going to be a theme throughout the show. and wait a second, i have a surprise for you, ladies and gentlemen, a face that you know. i know it very well indeed. put him on camera, please. there you go. look, regis philbin as i live and breathe, here he is.

how are you. >> i'm fine i'm now with fox sports 1 doing a sports show. stuart: yes. >> and they brought me over here and i said, and i saw you, and i said i know this man. well, hold on a second because the opening bell is ringing on wall street. >> yes. stuart: i want your input on that in a moment and i want some career advice for you, from you. >> and and i want stocks advice from you. stuart: regis, hold on a second and the opening bell is ringing. when that bell stops ringing, the trading day starts and yes, we're off and running and up 16 points. >> wow. stuart: and moving up. regis likes this. >> yes. stuart: and 14,925. look at this. >> look what i've done for your stocks. wow, up 30 points, that unusual? >> that's nothing, absolutely nothing. >> the way the day starts. stuart: nothing at all. >> it could collapse any minute. stuart: would you like to do this job? >> no, i want to know what we're going to do with apple. i'm involved with apple and driving me crazy.

what's your outlook on apple. stuart: first of all, did you buy at 700? >> i sold a little at 700, but i still have a lot in the 600's believe it or not and the 500's. i'm at 500 now, wait, 520 something like that right now. where do you see it going back up to 6? >> apple is on the screen right now. charles: not great, but at least it got over 5. stuart: you're asking me for an opinion on apple. i don't do stock market forecasts, i analyze. >> well, analyze that for me!. [laughter] poor apple, i feel like they better get that new development, whatever they're developing on the market right away. stuart: well, the word is they're going to come out with a new iphone with a fingerprint mechanism. >> okay. stuart: maybe, i don't know for sure, maybe you don't have to put your password in, putting your little fingerprint and bingo, you're in the system. >> i like that the. stuart: you like that. >> tell me about sirius radio.

stuart: you're on it. >> i know, but it's stuck in the 3's, make it go to the 5's. stuart: sit there for a second. i've got another show to do right here. hang out for a while. >> okay, just for a little while. stuart: okay of the first out of the gate. hewlett-packard falling out of bed says growth next year is unlikely. regis does not own hewlett-packard, but-- oh. nicole: reege, you've got to go over your portfolio. we need to rethink your investments. hewlett-packard down 9 1/2% today, guys, so, honestly, coming out. no, it's terrible, terrible. and you have some of the analysts that still like it. i have to tell you, both citigroup and morgan stanley like it. if you see a lot of them coming in here, they're going over to abercrombie & fitch probably looking to the down side. about 18% when it opens, it hasn't opened yet. stuart: i was going to get to that in a second. i own a lot of microsoft stock, i hope you do, too. >> i used to, i sold.

bad, bad timing. [laughter] >> give me microsoft stock, nicole, have you got it. >> microsoft, and buy from a neutral over at nomura. there's a nice look at that for you, stuart, up 1.8%. >> i think regis sold at about 58. >> poor reege. i remember when regis and joy came down here. they came down to the floor of the stock exchange. remember that visit? >> yes, we remember that. stuart: come down again. >> thank you very much. stuart: stay there, please. the big theme on the show this morning, are you spending? spending your money? are you? the answer is no. you're really not. especially not at these stores. let me go through, sears, very weak sales, much bigger than expected loss and the stock is down 8%. taking it on the chin. now, let's go to abercrombie. look at this, please. made half the profit that wall street thought it was going to make and maybe they should start

selling to fat people, they don't, you know. and that stock is getting crushed and we're down 20% on abercrombie right now. i'm sticking with the theme. you are not spending. britt beemer, we're in great company here. we've got regis philbin here. and confirm from your polling data, we're not spending, correct? >> we're not spending nearly as much as we did he three years ago and spending is down and they're buying fewer items as well. stuart: do you have numbers on credit card use? because i believe we're not using credit cards like we used to. >> well, stuart, 47% of them are trying to avoid credit cards as much as they could like the plague because they don't want to get in a situation where they get calls from people saying pay your bill now. we've got three fourths of them avoiding credit cards. >> we're not spending as much, not using credit cards like we used to.

now, you've got another poll. reading the results here. 33% of respondents say that they're spending less, because someone in their household has lost a job, is that true? >> yes, and almost 35% said that they are spending less because someone in their home has either moved from a full-time job to a part-time job. lost their job altogether. or they're in a situation where their job has been downgraded and may be working full-time, but making less money. >> okay. britt beemer, we appreciate you being with us today. i'm cutting it short because i've got regis philbin sitting right here. and a lot to say. prosperity has not returned, has it. >> listening to this, i don't know. i can see what's happening, especially hewlett-packard going down to 22. stuart: and i want some career advice. >> yes, sir. stuart: from you. you've been around a long time. >> a long time. stuart: you've been highly

successful. i've been watching you for virtually all of the 40 years that i've been in america. give me advice. how can i be like you? >> i think you're to go fine. look at you, you're sitting here, ruling the world. looking at the stocks. talking about it, you know? i think you've got a great job, stu. >> would you tell me more about your project at fox sports? >> well, we're out of sports network now, you know, fox sports 1, and we're on at 5:00 new york time, 2:00 l.a. time. and we're trying to make it not only sports, but some fun, some entertainment, some guests that are not sports players, got bill cosby coming on the show next wednesday, for example. and cosby played the defensive back for temple university. temple somehow is on the notre dame schedule, the first game they play. that following saturday. and cosby is all excited about it because if they beats notre dame in the first game, it's a

plus. stuart: i have a question from a former englishman. are you going to cover soccer. >> that's all we're talking about is soccer. fox loves soccer and they see it as the next big sport in america. stuart: well, they're right. they are write. i can see it growing every day and getting involved myself in it. >> hold on a second, regis, stay there, please, i've got to break away and more on the middle class decline. >> regis has got to go. stuart: no i'm not going to bring you down, i've got more on this theme. >> okay. stuart: i'm staying on the income issue. you're not spending because you are not making. median household income down 4.4% since the official end of the rescission in june '09. here is economist david kotok, that's a hard number. mesh america's middle class financially in disarray. explain it, why is it happening? >> we've got a big divide in the country now, stuart. we have a wealthy upper class and their confidence is rising

an and they're spending. and then we have the cohorts, the slices of various income and they're not as confident and they are not spending. so, there is a division when you dissect this data. the median of course is right in the middle and it portrays weak spending. so, very wealthy, doing some spending. the rest, very worried about jobs, part-time jobs, health care, obamacare, all the things we've talked about. stuart: i don't want to get into politics with you, david, but that's directly contrary to what we're expecting from the president. the rich, the top 20% doing pretty well. the rest of the people who basically backed president obama, not doing well. am i right? >> i think so. i think he let them down. he allowed a 2% payroll tax hike on 140 million working americans. he introduced a question about health care. there are now companies redoing their entire work forces because of health care costs. and we have established in the

united states something called the 29 hour work week. after criticizing the french, from the 35 hour work week, we've topped it. we now have a 29 hour work week because that's the definition of a part-timer. >> you just had to bring the french into this, didn't you? >> i like bordeaux, stuart, i like bordeaux. stuart: david, thanks a lot. we appreciate you being with us. i'm afraid we have to say goodbye to regis. i came in for advice and to have some fun and i leave depressed. stuart: you can't say that. a great pleasure. >> thanks for your help. best of luck to you with this. stuart: thanks, reege, see you later. you just crossed my shot. >> i'm sorry. stuart: you just. [laughter] thanks, reege. back to nicole, just keeps on getting better and better for death watch favorite game shots. the profits are higher for the all knowing analysts.

nicole: i love it. you just crossed my shot. okay, 16% for the upside for game stop. wow, looking good and they boosted their outlook because of what we've been reporting on, right? sony playstation, boards coming out the microsoft xbox one and they'll look game stop a winner. stuart: take that google. more people visited yahoo! last month. give me the two stocks, nicole. nicole: you have to put in a cave caveat. they did not count mobile. they did not count mobile, smart phone, tablets, seems a little skewed. google at 872.31. stuart: check the big board. we got what we were expecting, a modest bounce at the opening bell. 30-odd points, roughly 30 points higher. 14-9 is where we are. president obama kicking off the two day college tour today. and we're told he will push for

a free ride for college students, funded in part by taxpayers. a conservative commentator on that next. ♪ ♪ today i don't feel like doing anything ♪ ♪ i just want to lay in my bed ♪ (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everi'm with scottrade. me. (announcer) scottrade. awarded five-stars from smartmoney magazine. a quarter million tweeters is beare tweeting. and 900 million dollars are changing hands online.

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>> it's the end of august. don't expect heavy duty trading. air not getting it, but the dow is up 40 points. as for the price of gold. same story, not a lot of trading, but up $3, 1373 is the price. abercrombie made half the profit wall street thought it was going to make. down it goes. look at that. 18% down, that's a drop and a half. and president obama kicks off that bus tour today and wants to make college more affordable and talking to college audiences and by the way, he expects taxpayers to be picking up more of the

tab. there's a bigger problem facing the younger generation though, and that is a 16.1% unemployment rate for those aged 18 to 29. political prospect editor, caly mcinerney joins us now. is it getting better? i saw the number 16.1%, that's huge. >> yeah. >> any prospects that that improves in coming years? >> no, stuart, unfortunately not. not unless we elect a conservative leader to implement conservative economic policies, and stuart, the underlying problem behind the 16.1% unemployment is the long-terms effects it will have. you look at, for instance, japan. back in the 1990's they had a period of long-term youth unemployment and that generation of individuals was scarred from there on out. when employers went to hire. they were hiring new graduates. they weren't hiring 20-something year olds unemployed for two, three years. the effects are going to scar my generation forever more unless we turn this around, stuart, and

we will only turn it around by electing conservative leaders in the mid term election thereafter and-- go ahead. stuart: wait a minute, you know what's going to happen here? the president is going to embark on the bus tour speaking to friendly college crowds and going to be very popular, a very strong rounds of applause and he is-- we hear that he's likely to push a national program where taxpayers fund more of the college costs for young people. now, that's going to be politically popular, isn't it? >> it will be, and here is the problem, stuart and i hope that my generation is able to see this. the answer is always more funding, more loans. the answer is never to reduce the cost of college and the reason is because obama's trying to protect his liberal buddies in academia. it's sad that right now 35, 36 presidents of college universities make more than a million dollars, stuart, a million dollars. the answer to this problem is to reduce the cost of college, to

reduce these salaries, but colleges are bastions are liberalism and it's not going to change unless obama calls out his buddies, that's the bottom line. i want your reaction to something we have been talking about this week on the show and that is, i've visited a college, which shall be nameless. $57,500 a year, tuition, room and board and seems to me like an astronomical amount of money and offering basically a luxury hotel. they were postponing adulthood and prolonging adolescence. what's your comment on that? >> i think that's ridiculous. and i think you hit the nail on the head. that's the problem that we're facing. people who don't want to face reality. they live in this safe environment where they have these luxurious salaries and luxurious life style, but that's not the real world. that's not the real world. college kids get out into the reel real world and left with debt and no job.

and that's the basic problem and expose it for what it is, it's never going to change and we're going to face the same problems for the decade to come. stuart: you brought us the hard number. 16.1% unemployment for the millennial generation. we appreciate it. >> thanks, stuart. stuart: and dow jones, same old same old holding right there. 14,935 and i am back from vacation, finally getting back into the groove of work and i've got a simple question, where is president obama on the major issues of the world stage? my take on that is next. ♪ goodbye to you ♪ ♪

>> two big tech names you know them. hewlett-packard says growth next year is unlikely, look at it go down. and lucky game stop, we put it on death watch and that's why it's such a success. big profits. up goes the stock. and new at 10:00, we have one of the members of the undefeated 1972 miami dolphins team. he did not go to the white house event honoring him yesterday. we are going to ask bob

kirchburg why he stayed away. that's coming up top of the hour. here is my take on returning from vacation. it's not pretty. the news is frankly awful, worse, the president is absent on the issues that dominate your screens. item one, christians are being slaughtered all across the middle east. there is video which we will not use of a catholic priest being beheaded by islamists using a kitchen knife. churches burn in egypt, hundreds of christians dead. where is the president on this? his state department carefully balanced the death of islamists in egyptian prisons with the slaughter of christians. nonsense. there is no such balance. item two, a nerve gas attack allegedly by the syrian government, children among the dead. okay, not fully and independently confirmed, but where is the president on this? a year after laying down the red

line rule? he's absent. he couldn't even get the russians to go along with a u.n. resolution. number three, the great american middle class is it in financial disarray. income down, repeat, down from june of '09 at the end of the recession until now. that's four years, the obama years. median income down 4.4% and where is the president? he's starting a bus tour, going from college to college, telling friendly audiences that green energy and infrastructure will rejuvenate the middle class. that's it, mr. president? build roads and wind mills and all will be well? this is my third day back from vacation and as you can clearly tell, the rosie glow of relaxation as worn off and so it should. this is no time to sit back and watch the country slide. we can't ignore christians being butchered and children being gassed. no, let's get back to work. and recreate the america that we know and love. ask me what it's like

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no summer doldrums here. america's middle-class taking it on the chin during the obama years. wall street journal's dan henninger is here with that. where is the president? christians are slaughtered in the middle east and nerve gas kills children in syria. juan williams on that. remember bob could convert 1972 miami dolphins? wouldn't go to a white house reception yesterday because he

doesn't like the president's policies but he is here with us this morning. you think online retailer amazon sweeps all before it? brick and mortar making a come back. red eyes army veteran brings us his take on the war on wall street, jam packed show. here we go. ♪ stuart: we are half hour into the trading session. the dollar is up 25 points. that makes it back above 49. very slow trading. wells fargo cutting 2300 jobs in its mortgage unit. your customers refinancing because interest rates are rising. do you think housing could take an even bigger hit as mortgage rates go up? charles: no doubt. yesterday when existing home

numbers came out the national association of realtors said already they're worried about california, hawaii and the new york city metro area. the small increase we already had, they had red flags there. other problems, first-time buyers have not materialized. that is up to this plate, 20% of all buyers down from 32% year ago, they acknowledge it has to be over 40% to give the rally time in housing to continue, you have got to take it from investors and the chinese who bought these houses cheap and means street has to take the the. stuart: first-time buyers, proportion of people who are first-time buyers is down from a year ago. we just got the freddie mac fixed rate mortgage rate coming in at $4.58 up from $4.40 last week. charles: 31% was all cash so you don't need a mortgage with that many people buying all cash. stuart: the index of leading indicators up 0.6%. i don't know what to make of

that. charles: greenspan for some reason liked that metric. hasn't been that important since he has been out but i want to say i know it sounds good that housing prices have gone up. could be backfiring. we are up 16 months in a row, 16 consecutive months year over year. last time that happened was february of 2005-may of 2006 when we got to abubble area. you don't want them to skyrocket where people feel they missed the move. stuart: the dow is still up 23 points, know up from the index leading number or mortgage number. game stop on deathwatch and the stock as always, higher than expected profits. how good is it? nicole: $1.15 moving to a new high and all of this on speculation of the new council coming out boosting their outlook for play station iv and microsoft x box i. here is why we have the three

month chart. you may remember when it was on deathwatch. on june 3rd that they closed at $33.16 and here is that $54.74. it is up 60% since it was put on deathwatch john bardeen. stuart: we will never put anything on deathwatch again. charles: this is hard to get mad because it was a common-sense knee-jerk thing. i know where i live i don't see the enclosed down a couple of them, began to mortar is easy to get online, felt like -- in the long run it might be but in the meantime. stuart: in respect, he did say three to four years. charles: from a stock investment point of view, anything could go up or down in three or four years. there's a lot of room to take a victory lap. you have to be more precise.

stuart: led and the with microsoft. charles: you got an upgrade this morning. analysts, whose name was william varney. it wasn't william varney. stuart: watch it. the president kicking off that bus tour today at 11:15 to be precise. make his pitch to the middle-class in an hour. expect to hear more of the same from the president, more tax and spend policies. i don't think they are working. i have some proof of that. median household income is down 4.4%, the end of the recession in june of 2009. is the president ignoring the issues that really matter to as? here is juan williams, who joins us frequently. am i wrong? i am saying the president's policies are contributing to the decline of the middle class financially. explained to me, am i wrong?

>> i don't know where you are coming from on this because we have been through a terrible recession and if you look at where we are where you have to say people have made up some of that loss and you look at wall street, things going great, but at the jobs picture, unemployment is down from where it was that the worst of this recession so clearly there is a tremendous amount of stress and strain on the middle class in the country and in fact the president is out there trying to pick up on this politically and exploit it. he is the one who represents the middle class. stuart: here is my problem. the decline of the middle class financially has speeded up since june of 2009 and i think it speeded up because of the president's policies which are essentially tax more, spend more, spend more government money, tax the private sector and take it away from them. i think that is why the decline of the middle class has actually speeded up. that is why i am saying is the

president's policies that are partially responsible for this. >> i don't see that. from the washington perspective the idea of austerity, sequestration, ben bernanke, the fed chief, everybody said we need to spend more, we need to stimulate this economy. the congress, federal government acute sector in terms of the economy and perfect the people have been pulling back and persisting in his attitude has not helped the american economy or given confidence to consumers or employers. charles: you hit the right word, confidence. it has to emanate from the white house. let's be honest, the president talks about hope in campaigning but doesn't give us any real hope. it is always them versus us, the ultimate bad guys, he has not been able to unlock what the federal reserve calls animal spirit in america and thht is his biggest failing. >> that is the point that is right on in so many ways.

the president has not been able to deal with the congress, has not been able to overcome those barriers. if you are talking about does this president in view confidence in terms of his economic policies, the polls are pretty clear. charles: people are not going out to buy a house, young people are not getting married. people are not buying into the idea that america is great and a lot of that is because of the president's message. >> the housing market is recovering. people are buying houses. i wish more getting married. stuart: i want to turn to another issue. i was watching special report last night and you were on the panel last night and i saw that james rose and reports about the but 3 of christians in the middle east and also the report about the use of nerve gas in the middle east, not confirmed

but the evidence is right there. i am intending the president should be doing something. should be saying something. this man is our leader. he should be standing up there and saying knock it off. this is wrong. and he is not. i think the president is failing in the elements of leadership in middle eastern policy and you say? >> i understand your position. for me, he is in a difficult box. clearly there is no appetite on the part of the american public to get involved directly in syria or in egypt in the syrian situation right now with the gases that he said there was the red line, the power of the american word and the american promise to take action has now been vacated. if you are in the middle east a you hear the president make a statement you have got to say it is empty rhetoric, this guy doesn't back up but on the other hand i don't know what it is do

we want him to do? do we want the no-fly zone? there are risks to no-fly zones. people and fire at our planes. who are we backing? you don't know if your pudding weapons, martin dempsey of the joint chiefs, who are we backing? are we putting weapons in the hand of al qaeda? stuart: the president should say the butchery of christians is wrong, the use of nerve gas is wrong and if you do it again there will be consequences and there will be consequences and i want to see them. knock somebody off, do something. you can't just let this thing slide. i have got to wrap it up. you look a little down. york defense of the president on economic policy was not as vigorous as we were expecting and you defended middle eastern policy, not exactly robust. >> on the middle east i give you the middle eastern policy. the economic policies i think he is doing better than you think but in the middle east this thing is a mess. stuart: always a pleasure and we thank you.

hewlett-packard, the stock is getting hammered. let's get back to the markets. how far down as it? nicole: you see hewlett-packard down, over 13% and also 22 points shaved off of the dow jones industrial, they had one area of the enterprise divisions that they had such high hopes this would have been competing against ibm and instead that group was disappointing. some acquisitions in the pipeline and of course meg whitman working on a turnaround, growth in the fiscal year ahead is unlikely. that is terrible. stuart: just a huge move in some very well-known stocks, hewlett-packard, abercrombie, big moves, on the wrong side of the investment. thank you very much indeed. 1972 miami dolphins were invited to attend a white house salute with president obama honoring their legacy. however three players opt out because they don't agree with the president's policies. one of them is here to explain.

joining me miami dolphins guard from 1972, welcome to the program. good to see you. >> very good to be here. stuart: would you like -- >> thank you very much. stuart: is there a specific policy don't like or the entire presidency? explain why you didn't go yesterday. >> pretty much the entire as we say from sea to shining sea. before we get going into hard work, i would like to let you know that varney is fringe. stuart: where are you going with this? >> you just spoke with regis, did you not? stuart: i did. >> our lady of the lake. three guesses as to where i graduated from. stuart: notre dame?

>> yes. stuart: is that the real name of notre dame is in indiana? >> of course. absolutely. stuart: tell us why you didn't go yesterday. >> actually, many reasons. it would be quicker and easier to mentioned the reasons, too many reasons i didn't go. anywhere from failed policies to cover-ups, other kinds of scandals, for me it would have been hypocritical. i am glad for my teammates that went and hope they had a great time but for me it would have been like i say hypocritical. i didn't belong there, i don't believe in this president, i don't believe in the administration, i don't believe in anything, he has had

scandalous results, the middle income which is always the most important, the middle class i should say is always the most important part of any country and their taxes have gone up and their incomes have come down. the african-american population is scandalously high. stuart: i got to leave it but i want to let you know that on the day you won that superbowl undefeated 1972, that was january of 1972, 73 actually, that was a superbowl game, that was the day i first arrived in america. stuart varney does have some relevance. >> i guess so. it goes beyond notre down to lock -- notre dame du lac. we should get you a perfect

season ring. i don't know what i was doing on that day but i was here. stuart: if you ever want to come back on this program you are welcome indeed. got to go, thanks very much. traditional retail versus amazon.com. another online retailer. could break and mortar stores finally be catching up? you may be surprised about this. we have a full story next. [ male announcer] surprise -- you're having triplets. [ babies crying ]

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does your mouth often feel dry?

a dry mouth can be a side effect of many medications but it can also lead to tooth decay and bad breath. that's why there's biotene. available as an oral rinse, toothpaste, spray or gel, biotene can provide soothing relief, and it helps keep your mouth healthy, too. remember, while your medication is doing you good, a dry mouth isn't. biotene -- for people who suffer from dry mouth. stuart: maybe abercrombie should start selling to fat people. they don't. made half polk profit wall street thought it was going to make. is this a lesson on what not to do? charles: we had a spirited discussion about this. i thought it was dumb. it is not the idea that -- stuart: this is selling to fat people. charles: the idea of not selling to fat people is your prerogative.

the idea of basing fat people, putting them down, the ceo dogging a whole group of people out there. that kids didn't buy his clothes and skinny friends did and got stuck at the game stop. that is what these fat kids did. i have a business. you have to have a certain income to use my business. i will never market it if you don't call me, that is mean-spirited. too much of that going on. stuart: interesting. i want to move on to bed bath and beyond. in some areas, brick and mortar, bed bath and beyond is beating amazon.com in the price war. what is that? charles: that is from the old boxing days. you are the only one who heard it. stuart: a boxing bill? i am the only one who heard it? right here, let's get into this. bed bath and beyond beating amazon.com on price. pretend mortar beating on line.

is this the trend of the future? >> basically a company, investments came out with a report where they aggregated finnerty of the same products and gave that to amazon and that is what we saw. the prices on bed bath and beyond were 6.5% lower than amazon and this was before coupons people were using. stuart: 20% coupons. >> this has everyone up in arms because it is the brick and mortar store. you have to drive the party line and by the merchandize and amazon is instant, low overhead because everything is on line and they don't have a store to go into and they were beating a lot of brick and mortar stores on price. this is now the issue. stuart: is referred to some degree to bad back and beyond. >> that has everyone wondering, brick and mortar stores are able

to beat amazon on this price and eventually yes. stuart: i have one more for you. a guy goes into best buy, takes his smart phone, he wants to buy a dvd, he scans the bar code on the dvd and says wait a minute, amazon is $2 cheaper, takes the smart phone to the cashier and says look at this, $2 cheaper amazon at which point she says i am taking $2 offer price, matching the price. >> we will see a lot of retailers do that because they are so keen on being amazon on that price. they don't want to be beat out especially now the we are moving into holiday we will see the likes of target, walmart and best buy and bed bath and beyond going up again. stuart: great news for us. charles: great news for consumers. what does amazon do about all this? the tables are turning.

>> the reason pretend mortar stores are able to beat them is their vendor relations. they have special deals with their vendors where they are able to drive the price down. amazon a lot of the times does their pricing by third-party. they are not dealing directly with vendors. what they have to do is change, disrupt the market once again and change their model and have their relationship with vendors directly to get those prices down. stuart: amazon, i'm told, wants to introduce same-day delivery. order in the morning, get it in the afternoon, where houses all over the country, game changing? >> fantastic but think about margins they are eating into with free delivery. that will start eating into the revenues they are going to make. charles: stock has been special. they haven't made that much money since their inception, one of the most amazing stocks out there. the street will forgive them for being, quote, disruptive. >> they're branching out and just acquired the washington post.

remains to be seen how far they can spread themselves, starts to be negatively affecting them. stuart: brick and mortar not dead. >> not yet. not even close. stuart: thanks for joining us. always appreciate it. president obama said you could keep your health insurance under obamacare. turns out that is not the case. another big employer decides to drop coverage. q nancy pelosi. >> we have to pass the bill so that you can find out what it in it away from the fog of the controversy. this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same.

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stuart: we are down 105 yesterday but 46 as of right now and here comes charles. he says he can make us some money with men's students. charles: i actually liked men's warehouse before and kicked out the ceo. and there is some scuttlebutt that he is putting together to take over the company. and using any traditional valuation magic. and this is a 20% move.

and jumped on that, >> and men's sued playboy. charles: that is a value play to be honest with you. stuart: charles payne likes men's warehouse at this price. he says it is going up. charles: even though i never bought a suit there. stuart: i bought most of them. charles: it was fun having you in this chair. stuart: first was ups, university of virginia citing obamacare, that university says spouses of employees who have access to health insurance through their own jobs will not be covered under the university plan. wait, remember when the president said this? >> if you like your doctor you will be able to keep your doctor, period. no matter what you have heard, if you like your doctor or

health care plan you can keep it. stuart: not working quite like that, is it? and other results of obamacare, of four new hires are part-time workers. elizabeth macdonald has that story for us. three of four new jobs are part-time? liz: the bureau of labor statistics, from the household survey and it is a trend that has accelerated versus the first half of last year, more than half were part-time workers but the new jobs created. stuart: the left said it not so. the obamacare had no impact on the employment policies of america. liz: they haven't dug into what the federal reserve is saying, that in each of the beige book's release this year, health reform has been cited as the job market concern but this, reporting to the federal reserve, the chicago federal reserve, a philadelphia federal reserve, mercer consultant saying one in ten

companies reporting to it i saying they will cut worker hours. one in five in the hospitality, meaning hotel restaurant retail will be cutting worker hours. stuart: i know that nbc of all people in washington d.c. the local station, they surveyed 20 employers and all of them said increase in part-time employment only. liz: even the harvard business review says the fastest-growing segment of the work force is part time. we have a record twenty-eight million part-time workers. that is why gdp growth is flat lining, a consumer spending is 70% of the economy. university of chicago saying obamacare distortions to the labour market will outweigh any growth from lowering the health care costs. stuart: you got one last one, a big new bureaucracy by the obamacare people. liz: they are basically hiring criminal investigators to detect

possible fraud in the new health care reform system. even the inspector general for h h s is saying they want to be the world's premier law enforcement agency for healthcare. stuart: how much are they spending on that? liz: $140 million, hiring 2,000 more workers. we are talking criminal investigators, dental officers. charles: accounting 16,000 additional irs agents. liz: we don't know -- charles: there will be more. liz: we don't know if it is 16,000 or not but when you do the math on the money appropriated and the great doubles for workers we don't know how many thousands more irs workers will also be hired. stuart: you are missing the point. obamacare is that job creation machine. you didn't know that. liz: that happens when you restructure the economy. stuart: thanks very much. top story in the wall street journal, eric holder going to war with wall street, red eyes

next. >> you were one of the people on eridu said the official announcement, we have an excuse, stupid americans, we see a guy dressed like that, that is doing their thing you should have known better. so shame on you.

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stuart: another big name making the big move, sears, weak sales, bigger than expected loss down 7% at 40. guess who is at the cme today? wait for it. there you go! she is back? sandra smith back from maternity leave. is it baby cora? >> baby coral. stuart: she is doing well i trust? >> absolutely spectacular. i remember before i left you said this would be the best thing you have ever done and once again you were right. stuart: it changes your life. sandra: she is so beautiful. stuart: when you used to be able to sleep eight hours a night. those days are gone forever. sandra: out the door. but i am happy to wake up for

her. she has been a doll. we are enjoying every minute. stuart: good to see you again. sandra: back to business. stuart: you are long on the floor of the cme where you make your mark before you came in to television. what happens to the trading on various markets if we get the ten year treasury yielding 3%? i know we are close. it is a big benchmark. what happens if we hit it? sandra: you will see a lot of headlines, all these different web sites, financial websites and newspapers, traders are jittery about the fed blowing out of the bond buying program, not the case. they are ready for the free market to get back to normal. these guys think maybe we will see a sell-off in the stock market, but we see the interest rate back to 3%, that is a realization these markets are returning to normal and no longer artificially propped up by the fed. they want the government to get out of their business so in one

aspect that would be a good thing. traders are eager to get the fat out of there and get back to business. stuart: still sharp as ever. new mother really sharp, back from maternity leave, it is terrific to have you back, welcome back. sandra: thank you. stuart: yesterday charles and i discussed one of the top stories in the wall street journal, attorney general eric holder going after wall street even though it is five years since the crash. this pravda any mail from one of our viewers. wall street is as crooked as the big banks we bailed out. a lot of wall street investment banks have been crawling around in obama's ball person she told office. they get free money, taxpayers' money and invest it to make themselves rich. the average investor is not as dumb as wall street would believe. wall street is in a fairy tale world of finance and doesn't know how real americans struggle to survive these days. got that?

is andy levy. intensely unpopular, a lot of people on the streets of new york and elsewhere. >> i am going to join them. i will put on my populist catch which has a brim in the front and the brim in the back. i don't know why. people historically don't like lawyers. that is in part because the legal code is so complex that a non lawyers can't hope to understand it so you feel taken advantage of and setting aside the bailout and what we saw five years ago that is what happened with wall street and they have no one to blame but themselves. the average person which includes me understanding of economics and interaction with the economy is supply and demand. i want to buy something the cost a certain price. i can afford it i will buy it. sometimes i will buy it when i can't afford it because i am dumb and stocks, you want to afford a company you buy stock but wall street has become whether it is a perception or a

reality or real problem has become a different thing with hedge funds, derivatives, selling short, doing all these things and there is a perception polk thing is a scam and at the end of it all the only winners are investment houses and your viewers who e-mail said they are living in a fairytale world. i think we have what i like to call a vegas based economy where everything becomes a huge gamble with your money and it seems like the house is the only one that wins unless you get really lucky. now we see even if the house loses the government bails the house out. stuart: you think wall street is removed? favor the big guys and against a little guy? >> i don't think it is ridge but it has become a thing where the average person can't hope to understand what is going on and that leads to distrust. stuart: you have a stock-market investment of your own?

>> no. don: wouldn't you? >> no because i don't understand it. what i understand is cash under my mattress. stuart: i don't believe that for one moment but you gotta 401(k). you are in the stock market. >> that aside. stuart: you think that is rigged? >> not that i think it is rigged but there's a perception that it is unfair. charles: i don't disagree with any% what hurts me is that people should not be invested in the stock market because they don't understand. all morning we were talking about power abercrombie and its stock got hit. anybody out there with teenage kids going to the mall over the last six months, my son doesn't want to go in the store. you love the urban outfitters, abercrombie is down but greater than that if you ate a bowl of cheerios 20 years ago and set i love this product and bought the stock you would be set for life and you bought it and kept buying it, that part has nothing to do with the guys on wall

street. i am not here to protect them because they do live in a bubble world. it is a very nice world with big houses but we have to disconnect that from the idea of being known is of great companies because when you say you are not in a market that is not right. >> as it turned around? >> i agree with what you're saying. stocks make sense. the average person can understand you buy stock in a company and of the company does well you make money. this other stuff, derivatives, all these things. charles: we should let them go out of business when they fail instead of the idea of bailing them out with taxpayer money is ludicrous, people need to understand companies go public, go to wall street and have initial public offerings and raise money and create products and at the end of the day we get the iphone and if apple hires 50,000 people and they have a job there is a legal function, it has been skewed over the years but we better be careful not to kill it all. stuart: we want you to stay

right there. listen to the other side, the correct side. all right, president obama hits the road, a bus tour in colleges in new york and pennsylvania pitching his plans to the middle-class. the middle-class is doing worse under the president's tenure. we will deal with that next with dan henninger. ♪ . with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades

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first round's on me. stuart: a number for you used to be important, not so important now, first-time unemployment benefit claims, year low, initial claims down 330,000 this week, the lowest since november of 2007. nt's reality series duck dynasty becoming the most successful cable program of all time. the show's fourth season premiere got 11.8 million viewers, making it the highest rated and scripted show in cable history, close to topping cable's formerly top-rated show the walking dead. superstar maria schiarapova announcing she is withdrawing from the u.s. open because of a shoulder industry. she was third in this year's of the weekly made news when she considered changing her name to

sugar to promote her candy but she is out in the open and dan henninger is next. [ male announcer ] these days, a small business can save by sharing.

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high. the first time i mentioned it it went up and took a hit on fda news and i said hang in it will go up and you see where it fell, hang in and it went up big time but i still think it is a buy. they still have a therapy system based on the nerve in your neck, got approval for epilepsy in 1997 and working on a way to a depression with this. will be a grand slam. the trials have been phenomenal, sales in america, units in europe for a huge all over the place, every time it gives people should consider buying get. you think i'm joking. people who put this in their neck for a year three of ten had significant improvement to the point where they had no depressive system that all. stuart: we have a stock recommendation for a company that puts this thing in your neck. charles: the scientific definition. what do you say?

>> hard to believe people don't trust wall street. so the stock is dropping so i should buy it. charles: it is down a little bit because of a knee-jerk reaction. charles: stuart: dan henninger per one of the premier columnists in the united states of america shaking his head about this thing in your neck. in 30 minutes the president will make his pitch to the middle class, middle class which our guest says the president does not understand. here is wall street journal's dan henninger. what do you mean the president doesn't understand the middle class? >> i may be one of the few people who is still listening to the speeches the president delivers. i get paid. i have been struck, doing this for a long time, talks about a grand bargain for the middle class and i have some ideas and saturday radio address a couple weeks ago it was the same thing.

always in every one of the speeches includes getting into the wind and the sun by which he means windmills and building solar panels. sort of like remember the movie the graduate where dust and hoffman's father in law said plastic, it is like obama telling people wind, sun come and i thought this is a guy so abstracted from the lives of real middle-class people out there in the country that he just doesn't get it. he is proposing this utopian environmentalism to people who have been out of work for four years. the other thing i was struck by was looking at the recent gallup poll that comes out, his approval rating keeps hobbling around 50, down 45%. disapproval or approval of his handling of the economy has been around 33% since the year 2010. always down 1/3 with disapproval of his handling the economy

around 60%. that is the middle class. they understand it is not going right for him. stuart: but he can't retreat. >> he won't refreeze. stuart: how can he turn around and say we need growth and to get growth we will cut taxes, stimulate the private sector, he cannot possibly say that. >> the speech he should be giving in this high school in syracuse and the university of buffalo. charles: the utopian economic part is part of the entire utopian idea that goes back to thomas more to voltaire. the president bought into this polk, line and sinker. it has never been economics. they may quote something in the veneer of economics and sell it like health care will bring the cost curve but it was never about saving money. it was about america being unfair country. stuart: his political message is a political winner. economic message is a flat out loser for america's middle-class. that is where i am coming from.

>> i'm not sure it is a political winner. he is becoming more isolated out there. the fact is we have an economy that is growing, 2% at best. treading water for four years, it should be hard to tread water, you get exhausted and now you're getting these reports, you have been talking about them on this show, all these department store sales. and upper-middle-class or straight lower middle class and the consumers losing hard. thanks for joining us. by now you know it, i am fired up over the disappearance of the traditional, a kid starting school before labor day. the washington post did not agree with me, deal with it later.

at a dry cleaner, we replaced people with a machine. what?

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stuart: seems to me august keeps ending earlier. sooner than ever. i say give the kids a break and me too. let us have our traditional organs but the washington post this agrees. in today's editorial they say

this. schools shouldn't start any later than it already does. they think the more school you get the more learning you got. >> august is ending earlier earlier, it is 31 days and always will be. i don't know why you say that. as far as the school year goes when i was a student by would have fought with the horrible idea to extend the school year and make it longer. now i think it is fantastic. i want these kids off my lawn and back in the classroom, make the school year twelvemonth long fine with me. in seriousness the department of labor released a study tuesday showing less than 1/3 of 16-19-year-olds have jobs this summer. one in four tried to find work couldn't this summer. because of the economy, teams can't get summer jobs, and nothing is worse than a board teenager,

stuart: we are out of time. stuart: charles: i disagree with you. the chinese are running circles around our kids, they'd better back to school and make the curriculum harder. stuart: we are bringing back the highlight reel. not because of you but regis philbin. that is next. every day we're working to be an even better company -

and to keep our commitments. and we've made a big mmitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger. [ villain ] well mr. baldwin... it appears our journey has come to a delightful end. then i better use the capital one purchase eraser to redeem my venture miles for this trip. purchase eraser? it's the easy way to erase any recent travel expense.

i just pick a charge, like my flight with a few taps, it's taken care of. impressive baldwin. does it work for hotels? absolutely thank goodness. mrs. villain and i are anning our... you scare me. and i like it. let's go what's in your wallet? speak to here it is. the regis philbin highlight reel. here he is. [laughter] >> while. up 30 points. is that unusual? don: i do not do stock market forecast. i analyze. >> thank you very much for all of your help. stuart: thank you. we will see you later. you just crossed my shop.

[laughter] stuart: he was great. connell: love regis on tv more than anyone in history. thank you, stuart. we have a lot of news this hour. charlie gasparino standing by with a breaking story. eliot spitzer bringing two sides together. cbs, dennis has a story on that for us. monica crowley is here to wait on the low 2009 levels. the bank of america in turn, we will find out exactly what happened.